White Dam Project: 102,000 oz Resource and $12.4M Funding Drive Restart
Pacgold Limited announces acquisition and phased restart of the White Dam gold project, targeting near-term production and resource expansion with a $12.4 million funding plan.
- Acquisition of White Dam gold project with 102,000 oz JORC resource
- Near-term production restart via re-crushing existing heap leach pad in Q4 2025
- Phased exploration and resource infill drilling at Hannaford, Vertigo, and White Dam North
- $12.4 million funding required for asset purchase, plant refurbishment, and drilling
- Experienced management team with heap leach expertise leading the project
Strategic Acquisition and Immediate Production Plans
Pacgold Limited (ASX – PGO) has unveiled its acquisition of the White Dam gold project in South Australia, marking a significant step towards restarting gold production in the near term. The project boasts a JORC-compliant resource of approximately 102,000 ounces of gold, supported by existing heap leach infrastructure and operational permits. Pacgold aims to leverage this foundation to generate cash flow by re-crushing the final lift of the existing heap leach pad, targeting production commencement in the fourth quarter of 2025.
Phased Approach to Resource Expansion and Production Growth
The company’s strategy is methodical and phased, beginning with a low-capital restart focused on heap leach pad reprocessing. This initial phase requires an estimated A$800,000 in capital expenditure and minimal permitting hurdles, enabling a swift ramp-up. Following this, Pacgold plans extensive infill and expansion drilling programs across key deposits including Hannaford, Vertigo, and White Dam North. These efforts aim to convert inferred resources to indicated categories, refine pit designs, and optimize mine scheduling to underpin a sustainable production profile.
Exploration Upside and Regional Opportunities
Beyond the core White Dam assets, Pacgold is advancing exploration at nearby targets such as Mary Mine and Manna Hill, which present promising gold and copper mineralisation. The company holds rights to additional projects secured through recent agreements, positioning itself as the sole operator with processing capabilities in the region. This hub-and-spoke model could unlock further value through toll treatment or acquisition of third-party resources, enhancing the project's long-term growth potential.
Financial and Operational Backing
To execute its ambitious plan, Pacgold outlines a funding requirement of approximately A$12.4 million over the next 12 to 18 months. These funds will cover asset acquisition payments, plant refurbishment, power system upgrades, drilling campaigns, and exploration activities. The management team, led by experienced geologists and mining executives with proven heap leach project delivery, brings confidence to the operational roadmap. Additionally, the integration of a SART plant for copper recovery enhances project economics by turning copper from a cost into a revenue credit.
Market Context and Strategic Implications
Pacgold’s timing aligns with a robust gold price environment, currently around A$5,500 per ounce, substantially higher than previous mining campaigns. This price leverage, combined with low-cost heap leach processing and existing infrastructure, positions White Dam as an attractive value proposition. The company’s phased, debt-free approach mitigates risk while targeting incremental value creation through resource upgrades and regional exploration success.
Bottom Line?
Pacgold’s White Dam acquisition and restart plan could reshape its production profile, but execution and exploration results will be critical to watch.
Questions in the middle?
- Will Pacgold secure the full $12.4 million funding on schedule to meet its production restart timeline?
- How will infill drilling results at Hannaford, Vertigo, and White Dam North impact resource classification and mine plans?
- What potential does the Mary Mine and other regional targets hold to extend the project’s mine life and output?